CHALLENGES TO DEVELOPING LEADERSHIP CAPABILITIES
FOR 1,159 BUSINESS LEADERS | DATA AS OF MARCH 2025
SOURCE: HARVARD BUSINESS REVIEW

For credit unions, the importance of leadership development goes beyond staffing; it safeguards the mission and strengthens member value. Strong leadership development strategies help reduce disruption during leadership transitions and ensure credit unions are well-managed and future-ready. Understanding where gaps exist can be a low-hanging fruit that pays dividends when paired with a clear strategy. For credit unions looking to establish a succession plan, research from Gallup encourages organizations to think outside the box by assessing readiness and defining stages of development.

These principles come to life in practical strategies credit unions are using to strengthen leadership pipelines and retain top talent.

Strategic Insights

• Nearly 50% of organizations struggle with leadership development due to lack of time and unclear skill gaps, according to the HBR study. The pandemic and the Great Resignation taught credit unions that keeping great employees means meeting them where they are and investing in their development regardless of where they sit. “That means offering virtual conferences, webinars, online training — all with the same energy we used to bring to in-person programs,” says Lori Smith, chief human resources officer at Community First Credit Union of Florida ($2.9B, Jacksonville, FL).
• Companies that invest in leadership growth report higher engagement and lower turnover, especially in competitive talent markets. At Chartway FCU ($3.2B, Virginia Beach, VA), an emerging leaders is helping to create a strong internal leadership pipeline. “We wanted intentionality around retention and building a strong internal leadership pipeline for succession planning,” says Jill Edsall, director of learning and talent development.  “This program identifies a pocket of high performers where we can invest more time and energy.”
• Organizations that link leadership development to business strategy build stronger succession pipelines. Talent development is a key area of succession planning strategy at Patelco ($9.5B, Dublin, CA). The credit union has a three-tiered system that identifies employees it wants to retain, those ready for new roles and responsibilities, and those who need professional support. “We have clear expectations for our leaders based on talent assessments, cross-functional calibration, and transparent plans communicated to the individual,” says Susan Makris, Patelco’s chief people officer.

The post Is Your Credit Union Making Time For Leadership Development? appeared first on CreditUnions.com.

As credit unions nationwide grapple with meeting the NCUA’s new rule on succession planning, succession planning data from Quantum Governance, L3C, provides an understanding of what is needed to meet today’s governance challenges.

In the firm’s State of Credit Union Governance report, Quantum Governance asked two central questions:

1. What are the skills that add the most value in the boardroom?
2. What are the highest priorities when recruiting new board members?

The results are surprising.

WHAT BOARD MEMBERS VALUE IN THE BOARDROOM VS. WHAT IS PRIORITIZED IN RECRUITMENT
FOR STATE OF CREDIT UNION GOVERNANCE RESPONDENTS
SOURCE: Quantum Governance, L3C

Although Ability to focus on the future (prioritization 51% and value 76%) and Financial literacy (prioritization 50% and value 45%) fell in the top three responses for both questions, there was little alignment beyond this.

Most respondents prioritized Demographic diversity (53%) over Ability to focus on the future (51%). Hard skills like Financial literacy (50%), Specific operational expertise (48%) and Professional services expertise (43%) rounded out the top five responses.

But on the question of what skills add the most value, the respondents told a different story. Only one of the top five responses — Financial literacy (45%) — was related to hard skills; the remaining skills were human skills like Ability to focus on the future (76%), Independent mindedness (66%), Understands the membership (44%) and Consensus building (38%).

Strategic Insights

• Credit unions are not aligning their recruitment efforts with what they value most in the boardroom, but they should.
• The most valued skill in the boardroom is Ability to focus on the future — or directors with a strategic mindset.
• There is a shift away from valuing hard skills in the boardroom to valuing human skills.
• Financial literacy is the most valued hard skill in the boardroom.
• Although credit unions prioritize Demographic diversity most in terms of recruitment efforts, significantly fewer respondents actually value it.

The post Aligning Recruitment Efforts With Boardroom Value appeared first on CreditUnions.com.

Prudent savings and debt management habits have mildly improved the financial situation for households across the United States in the past year. Nationwide, fewer households are considered financially vulnerable. Still, past teachings suggest these gains can be swiftly reversed.

PERCENTAGE OF HOUSEHOLDS IN EACH FINANCIAL HEALTH TIER, BY YEAR
FOR U.S. HOUSEHOLDS
SOURCE: Financial Health Network

After years of distress, the past year’s mild decrease in household financial vulnerability suggests those struggling have some breathing room. Most promising, lower-income and lower-wealth households were less likely to be financially vulnerable in 2025 than in 2024, having decreased from 32% in 2024 to 28% in 2025, according to a September 2025 report from the Financial Health Network.

Despite this progress, the share of households that are financially healthy has not increased at a statistically significant level since 2021. Without focus and investment in the most vulnerable, progress is unlikely to last with each passing year.

Strategic Insights

• Year-over-year, the share of households that are financially healthy or financially coping has increased to 31% and 54%, respectively. Correspondingly, the financially vulnerable decreased to 15% during the same time period.
• Households without revolving credit card debt are more likely to be financially healthy. A quarter of households with revolving credit card debt are considered financially vulnerable.
• Only 56% of households are confident that their total insurance policies will provide enough support in an emergency, a meaningful decrease of 3% from 2024.
• Nationwide, 71% of households pay all of their bills on time, higher than pre-pandemic levels.
• Although still below pre-pandemic levels, 49% of households spent less than their income in the past year. This figure represents a meaningful rise from 2024.
• Geographically, the South has the highest share of financially vulnerable households whereas the West has the lowest. There is little difference between rural and urban households.
• The data from the Financial Health Network’s Trends Report was collected in the spring of 2025, from April to May. Since then, tariff policy and their impacts on prices could have adversely impacted households’ ability to spend less than their income. Similarly, layoffs in the labor market could hurt households’ status, increasing the share of financially vulnerable.
• Financial health is an objective metric, but that’s not the only thing that matters. People’s emotional connection to their financial situation is just as important. Gallup measures this as “Financial Wellbeing.”
• Financial wellbeing addresses a critical dimension in understanding the way someone’s financial situation impacts their life. Do they feel in control? Are they confident about their future? Do they believe they have a support structure they can count on?

It’s Time To Lead The Future Of Financial Wellbeing. Members stay when they feel seen, cared for, and confident in their credit union’s commitment to financial wellbeing. Credit unions who participate in the Member Engagement & Financial Wellbeing Consortium from Callahan & Associates and Gallup are already seeing behavior shifts and increased participation that improve wellbeing and drive sustainable growth. Will you join the next cohort?

The post Are U.S. Households Finally Catching A Break? appeared first on CreditUnions.com.

That shift isn’t happening in isolation. Industry research underscores how consumer expectations and behaviors are reshaping the role of physical locations and why branches still matter. The challenge — and opportunity — lies in rethinking what a branch can be. Data shows consumers still seek human touchpoints, even as digital dominates routine tasks.

CONSUMERS OF EVERY AGE LIKE SEEING BRANCHES IN THEIR NEIGHBORHOOD
FOR ACCENTURE GLOBAL BANKING CONSUMER STUDY RESPONDENTS
SOURCE: Accenture

Strategic Insights

• Consumers Rely On More Than One Provider: In the 2023 Accenture Global Banking Consumer Study, a full 59% of respondents acquired a financial product from a provider other than their primary bank.
• Multiple Products But Fewer Ties: North American consumers hold an average of seven financial products, but fewer than half — just 3.1 — come from their main institution.
• Digital For Simple, Branches For Complex: Although 63% prefer online banking for simple tasks like checking balances, most still visit branches for complicated issues, and two-thirds value having a branch nearby for stability and accessibility.
• Branch Closures Are Slowing: A 2024 Candascent white paper notes closures accelerated during the pandemic but have since slowed; Bank of America plans to open 165 new financial centers by 2026.
• The Opportunity For Credit Unions: Branches can evolve from transaction points to hubs for advice, education, and relationship building, reinforcing the cooperative’s unique role in its community.

How Are Credit Unions Elevating Branches?

• Deep in the heart of Southeastern Texas, DuGood Federal Credit Union($567.5M, Beaumont, TX) is opening a branch to help tomorrow’s tradespeople graduate on the right financial foot with products and services designed especially for them. Read more.
• When the closure of a mega bank branch on the campus of California State University, Northridge, created a gap in financial services, Premier America Credit Union($3.3B, Chatsworth, CA) stepped in with a new space and tailored solutions to tap into the university’s significant first-generation student population and improve financial inclusion for college students. Read more.
• At Tongass Federal Credit Union($228.6M, Ketchikan, AK), small-scale, tech-enabled branches serve far-flung communities with a cost-effective model that prioritizes accessibility. This approach ensures financial services remain within reach for members who need them the most. Read more.
• University Federal Credit Union’s ($4.2B, Austin, TX) mobile branch is breaking down barriers for underserved communities by providing convenient access to essential banking services, financial education, and trusted support right where people need it. Read more.
• When Redwood Credit Union ($9.5B, Santa Rosa, CA) partnered with a local catering company to operate cafes at two locations, the credit union put quality food at a good price in the hands of the public and employees alike, marrying financial and physical wellness in California’s wine country. Read more.

When Members Feel Cared For, They Stay. Gallup research shows emotionally engaged members stay longer, own more products, and contribute more business on high-value offerings. That kind of engagement doesn’t happen by accident — it happens by design. Callahan and Gallup equip credit unions to spark behavior change that improves member financial wellbeing and drives credit union sustainable growth. The next cohort is forming now. Learn more today.

The post The Member Experience Revolution appeared first on CreditUnions.com.

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While this change will take time to work its way through the regulatory system, it could set off a chain reaction resulting in a broader, and riskier, diversification of 401(k) assets.

The aim is to open up the more than 90 million employer-sponsored 401(k) plans to what are known as “alternative assets.” The White House bills this as a way for less wealthy Americans to participate in these burgeoning asset classes. As the stock market shrinks and private equity, real estate, and crypto expand, the White House sees the ability to participate in more areas of Wall Street as a win for Main Street.

Critics see opening up retirement funds to these asset classes as a way to introduce speculative products that savers often don’t quite understand into retirement savings.

While the new rules are pitched as an upside for retirement portfolios, they are not without controversy. Credit unions should be aware of these new rules and potential drawbacks –  not just for members, but for their own fiduciary duties as 401(k) providers.

The Member Impact

For roughly 90 million Americans, 401(k)s are the main retirement plan. Credit unions strive to go beyond banking and to help members reach full financial wellness. Because of that, understanding the risks in these new rules is crucial for credit unions to better educate members to make the best decisions.

These risks include:

• Volatility: While private equity and some cryptocurrencies can see higher returns for investors, that often comes with higher volatility. That can be attractive for younger consumers whose 401(k) plans may not reach maturity for decades. But those closer to retirement could pay dearly. If that member’s portfolio is hit by a “crypto-winter,” as seen in 2022-23, it could prolong their retirement plans. Further, many finance experts are skeptical as to whether a plan centered on private equity can match the performance of a more traditional stock-and-bonds plan.

Annual Growth Rates of Bitcoin and S&P 500
DATA AS OF JULY 2025
SOURCE: CoinDesk and S&P Dow Jones Indices

• Cost: Investing in private equity and crypto funds can bring additional fees and costs to the member than a fund invested in a traditional portfolio. Over time, fees can add up and eat into compounding returns, costing members with 401(k) plans significant money. Further, liquidity issues with private equity funds can complicate 401(k) administration.
• Valuation: Private equity portfolios are not publicly listed, therefore it is more difficult to obtain up-to-the-minute price information prior to investing. Thus, members may not have a clear understanding of what they own and could have a difficult time running the financial calculations on whether to retire.
• Disclosure: Private equity investments and crypto are not disclosed in the same way as equities or publicly traded stocks, meaning there’s less oversight on performance or due diligence. 401(k) funds that are invested in public markets, on the other hand, are required to disclose their financial performance. This way, members can be confident that their investments are performing well and the custodians are taking care of their savings.

The Employee Impact

While these changes are important for members, there are also implications for employees, since many credit unions offer 401(k) plans as an employee benefit.

There are two key things for employers to keep in mind (including credit unions):

• Employers have a fiduciary responsibility, due to their control over plan management and assets. This is designed to ensure plan participants are not harmed by imprudent decisions by the employer.
• While President Trump’s executive order is designed to address these fiduciary obligations, there are still compliance requirements related to ensuring the funds have fair fees, transparent performance, and alignment with market returns.

The post What Credit Unions Need To Know About New 401(k) Rules appeared first on CreditUnions.com.

For college students, higher education brings an even higher jump. Costs for them have risen 47% in that same period.

BACK-TO-SCHOOL SPENDING
FOR U.S. CONSUMERS| DATA AS OF 2025
SOURCE: National Retail Federation

The rise in back-to-school costs mirrors broader inflation trends. Back-to-school costs have risen by double digits in the past 10 years. Nationwide, median wages are up 43.7% since 2015, according to data from the Bureau of Labor Statistics; average credit union compensation per employee is up 56%, according to data from Callahan & Associates.

Strategic Insights

• Roughly two-thirds of families started their 2025 school shopping earlier than usual this year, with 51% saying they did so out of concern that tariffs will lead to price hikes.
• Total spending for K-12 shopping this year is expected to reach $39.4 billion, with nearly one-third of that — $13.6 billion, or almost $296 per person — expected to go toward electronics.
• Spending per person for college students and their families is down by approximately $40 from 2024, although more shoppers means overall spending is expected to rise to $88.8 billion, a 2.5% increase.
• Shoppers for both K-12 and college students continue to do the majority of their shopping online. Notably, discount stores have reported a 5-percentage-point increase with college shoppers this year — a sign some consumers are feeling the economic pinch.

Bigger Than A Backpack Drive Credit unions across the country are helping families prepare for back-to-school season in a variety of ways. Plenty are undertaking traditional efforts like backpack drives and school supply drop-off zones, but some shops are offering a holistic approach that encompasses sports physicals, haircuts, and more. Elsewhere, credit unions are providing grant opportunities, specialized lending, and more. Click here for 10 ways credit unions are helping start the school year off right.

The post Back To School Hits The Wallet appeared first on CreditUnions.com.

A report earlier this year from the Pew Research Center indicated nearly one-third of consumers, 28%, believe their financial picture will be worse one year from now. That’s a 12-point increase from last year’s data. Meanwhile, 35% percent expect things to be about the same, down from 49% last year, and the number of those who think things will be better by this time next year rose just three points to 37%.

Despite that, a majority of credit union members still feel confident about their financial futures, according to recent Gallup data, though bank customers report slightly higher confidence levels.

The bottom line? Consumer confidence is fragile, and despite a small uptick in optimism, more people than last year are anticipating worsening conditions.

FINANCIAL CONFIDENCE
FOR U.S. CONSUMERS | DATA AS OF 2025
SOURCE: GALLUP

For credit unions, this fragile confidence presents both a challenge and an opportunity. As consumers navigate uncertainty, the institutions best positioned to respond are those that already prioritize financial wellbeing. Credit unions, with their mission-driven focus and history of member support, are designed to meet this moment — not just with education, but with empathy, trust, and practical tools that help members feel more secure.

Strategic Insights

• Perhaps not surprisingly, much of the Pew data can be sliced and diced along partisan lines. A slight majority, 55%, of those who lean Republican expect things to improve in the next 12 months, whereas 47% of those who lean left expect things to worsen.
• Regardless of politics, things don’t look good for those of modest means. Nearly half, 45%, of lower-income consumers can’t pay their bills in full each month, compared to 19% of middle-income earners and just 7% of those in upper income brackets.
• Other demographic considerations also come into play. Two studies conducted in 2023 found more than half of women 25 years and older said they were not financially secure; a full 75% of low-income women had no emergency savings and 66% said they did not have the tools to plan for retirement.
• Additionally, one-third of Gen X and millennial consumers — 35% and 33%, respectively — feel financially worse off than their parents, according to a 2025 study from Credit One Bank, and younger generations are feeling anxious about their long-term financial futures.

How Are Credit Unions Supporting Members?

• Knoxville TVA Employees FCU is making it easier for younger members to set aside a little money for a rainy day. Learn more about how a little saving goes a long way.
• Meanwhile, UVA Community integrates financial education with products tailored to young people to help these members build confidence and independence. Read more about how to tackle teen banking.
• In 2022, InTouch expanded services for those nearing or in retirement to help members take an active role in planning their financial future. Read more about how this credit union makes retirees’ golden years brighter.
• Canopy Credit Union has invested in its front-line staff via certified financial coach training to empower employees and reinforce the institution’s commitment to community wellbeing. Read more about turning tellers into teachers.
• A partnership between Hello Credit Union and United Way’s local 211 service directs callers struggling with financial needs to Hello for credit counseling, budget assistance, or more. Learn more about answering the call for help.
• The Boost Center by Blue Federal Credit Union is a one-stop, centralized family resource center that offers help for everything from housing and transportation to food insecurity and financial services. Read how Blue boosts its community.

Join Callahan & Associates and Gallup to learn about exclusive research and insights on how emotional engagement and the perception of care drive member participation and, ultimately, credit union growth. Watch “A Roadmap To Credit Union Growth” today.

The post U.S. Consumers Present A Mixed Bag Of Future Financial Sentiment appeared first on CreditUnions.com.

WORK VS. RETIRE
FOR 1,000 REGISTERED VOTERS | DATA AS OF APRIL 2025
SOURCE: BlackRock Redefining Retirement

In today’s economic environment, saving is more important than ever, yet, many Americans have trouble doing so. The latest data underscores a growing sense of retirement insecurity and highlights key opportunities for credit unions to support savers at every stage of life.

Strategic Insights

• The closer people are to retirement, the more they tend to worry about their savings. In the BlackRock survey, 47% of respondents between the ages of 45 and 54 reported worrying about their retirement savings at least once a day; half between the ages of 55 and 64 check the performance of their retirement savings on a monthly basis at least. This continues into retirement, when 76% wished they had saved more money for retirement.
• IRA and Keogh plans are an optimal offering to help members actively plan for retirement, as such accounts offer potential tax benefits for individuals as well as self-employed or small-business owners. Among U.S. credit unions, 72% offer at least one IRA/Keogh account; however, IRA/Keoghs account for only 4% of the credit union share portfolio.
• Given the power of compounded savings, it’s better for members to plan ahead and start their retirement savings earlier rather than later. But, how does compounded savings work? How early should members start saving? How much might they need to retire comfortably? These are all common questions that credit unions can easily address through financial education programs.
• Even better — consider offering different programs for different member needs. Financial education programs geared toward smart retirement are a good way to coax younger members into thinking about how to manage their personal finances now to be better prepared down the road, whereas programs developed for older members might focus more on claiming Social Security benefits and the details of living on a fixed income.
• Abound Credit Union ($2.5B, Radcliff, KY) has partnered with Western Kentucky University since 2021 to give high school students a week of college experience learning about basic savings, budgeting, and lending. Read more about that in “School’s Out For Summer, But Financial Education Continues.”
• In 2022, InTouch Credit Union ($835.9 Plano, TX) expanded services for those nearing or in retirement, and in 2025, Golden 1 Credit Union($20.3B, Sacramento, CA) was named No. 1 on Money.com’s “Best Banks and Credit Unions for Seniors” thanks in part to its personal, proactive, and comprehensive approach. Read more in “Credit Unions Make Retirees’ Golden Years Brighter.”

Want to dive deeper into retirement data? Check out “Americans Aren’t Ready For Retirement. Credit Unions Can Help” and “What Does The Data Say About Financial Wellness?” on CreditUnions.com.

The post The New Retirement Reality Reveals Startling Facts appeared first on CreditUnions.com.

There’s a stark divide in digital wallet adoption, with Gen Z embracing those tools more than any other age bracket – and at more than three times the rate of baby boomers. Put another way, those born before 1980 use digital wallets at a rate almost 20 percentage points below those born in 1980 or later.

Digital wallets can be defined as apps designed to allow spenders to use their cards to transact entirely on their phone. Some of the most popular – including Apple Pay, Venmo, or Google Wallet – are becoming increasingly common consumer-facing financial technology.

Strategic Insights

• While digital wallet usage vary by generation, there’s more uniformity when it comes to income. According to a recent study by PYMNTS Intelligence, just over half (54.7%) of Americans making over $100,000 use a digital wallet. By comparison, 51.4% of those making $50,000 to $100,000 use these tools, and 41.2% of those who make less than $50,000. In the entire sample, 49.4% of Americans use a digital wallet, while 51% of U.S. consumers said they are somewhat or very interested in using a digital wallet.
• For credit unions, the speed of adoption is certainly something to take note of, especially as the industry works to expand its reach. Younger Americans tend to prefer more digital options, and a recent study from Velera showed the number of credit union members using digital wallets at least a few times per month has nearly doubled, rising from 27% in 2022 to 50% in 2024.
• Successfully navigating fintech adoption can give credit unions an edge. Through partnerships, credit unions can go head first in expanding member-facing technologies without having the expertise in-house to do so.

The post Digital Wallet Usage Skews Younger, But Becoming More Ubiquitous appeared first on CreditUnions.com.